Tesla Reduces Cybertruck Manufacturing Goals, Redirects Workforce: Report

Elon Musk’s Tesla is reportedly cutting back on production of its much-hyped Cybertruck, scaling down factory targets and reassigning employees to other lines as sales take a hit. A new report from Business Insider, citing insiders at the company, reveals that Tesla has significantly reduced the size of its Cybertruck team at the Texas Gigafactory, with some production lines now operating at a fraction of their previous capacity.

Elon Musk’s Tesla is reportedly cutting back on production of its much-hyped Cybertruck, scaling down factory targets and reassigning employees to other lines as sales take a hit. A new report from Business Insider, citing insiders at the company, reveals that Tesla has significantly reduced the size of its Cybertruck team at the Texas Gigafactory, with some production lines now operating at a fraction of their previous capacity.

The shift reportedly began months ago and intensified in recent weeks, with some workers being moved to the Model Y line. Similar reshuffling occurred last December, when Tesla informed employees about changing Cybertruck production schedules and even polled them about alternative roles.

Tesla’s decision comes on the heels of disappointing sales figures. The company sold just 6,406 Cybertrucks in the first quarter of 2025, a steep drop from the previous quarter and far below expectations—especially considering Elon Musk’s previous claim of more than 1 million pre-orders. To date, Tesla has delivered fewer than 50,000 Cybertrucks, as per a March 20 recall filing.

In an attempt to revive demand, Tesla unveiled its most affordable Cybertruck variant in April—a rear-wheel-drive model priced at $70,000. The previous versions were all-wheel-drive and came with a heftier price tag.

However, the Cybertruck’s struggle is part of a larger trend. Tesla’s overall sales also dipped by 13% in the first quarter of 2025 compared to the same period last year. Industry experts attribute this decline to increasing competition in the EV sector, Tesla’s ageing product lineup, and ongoing protests by demonstrators outside several Tesla showrooms.

With mounting pressure from investors and intensifying competition in the electric vehicle market, Tesla’s efforts to recalibrate its production and offerings could be critical to its future trajectory.

Sources By Agencies